- Verrica Pharmaceuticals ( NASDAQ: VRCA ) added ~7% pre-market Monday after RBC Capital Markets upgraded the dermatology drug developer, citing a potential FDA nod for its lead asset VP-102.
- The upgrade comes weeks after Verrica ( VRCA ) resubmitted its marketing application for VP-102 in the U.S. to treat a viral skin infection called molluscum contagiosum (MC).
- Based on management input, RBC analyst Gregory Renza expects a 6-month review and a “favorable and sooner than expected approval outcome for VP-102 (YCANTH), as early as July.”
- With more clarity on the market and the company’s strategy, the analyst updates his model and upgrades the stock to Outperform from Sector Perform, raising his price target to $11 from $4 per share.
- “We believe the market opportunity and approach to a long-term development of the asset coupled with a potential approval back in sight for mid-year warrants a returned optimism on risk/reward into a new regulatory catalyst,” Renza wrote.
- Months before regulatory submission for VP-102, Verrica ( VRCA ) reported several insider purchases.
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Verrica rises as RBC upgrades citing “regulatory catalyst” for lead asset